Using financial statements to prepare a statement of cash flows—indirect method The comparative balance sheets for Redwood Corporation for 2006 and 2007 follow:

Other Information 1. Purchased land for $112,000.
2. Purchased new equipment for $100,000.
3. Sold old equipment that cost $132,000 with accumulated depreciation of $112,000 for $20,000 cash.
4. Issued common stock for $50,000.
Required Prepare the statement of cash flows for 2007, using the indirect method.